Exhibit - 10.44
Financial Covenant Modifications
00 Xxxxxxx Xxxxxxxxx
Xxx Xxxx, XX 00000-0000
(000)000-0000 March 16, 2000
Xxxx Xxxx,
Chief Financial Officer
Versant Corporation
0000 Xxxxxxxxx Xxxxxx
Xxxxxxx, XX 00000
Re: Financial covenant modifications
Dear Xxxx:
This Modification Letter Agreement ("Letter Agreement") is entered into by
Versant Corporation ("Borrower") and Comerica Bank - California ("Bank") as of
March 16, 2000. Borrower and Bank are currently parties to that certain
Revolving Credit Loan and Security Agreement (the "Agreement") dated as of May
15, 1997, as modified from time to time in writing (together with the documents
executed in connection therewith collectively the "Loan Documents") and entered
into the Third Modification to Revolving Credit Loan & Security Agreement and
First Modification to Variable Rate-Installment Note ("Modification") dated as
of June 18, 1999. Borrower and Bank desire to and hereby do agree to modify
Section B.4 of the Modification follows:
The following sub-sections of Section B. 4. b. of the Modification
shall be deleted in their entirety and replaced with the following:
"b. Section 6.17 The following sub-sections of Section 6.17 are
hereby deleted in their entirety and replaced with the following:
d. A Liquidity Ratio ( defined as (a) the sum of ( i ) cash
plus ( ii ) accounts receivable to (b) the sum of the
balance outstanding under this Agreement, plus (ii) the
current portion of long term debt, plus (iii) accounts
payable) of not less than 2.50:1.0 as of the last day of
the fiscal quarter ending March 31, 2000; not less than
3.0:1.0 as of the last day of the fiscal quarter ending
June 30, 2000; and lastly, not less than 3.5:1.0 as of the
last day of the fiscal quarter ending September 30, 2000
and each fiscal quarter thereafter.
Xxxx Xxxx
March 16, 2000
Page 2
f. Net Operating Cash, as defined in FASB 95 and 102, not less
than [$365,000] as of the last day of the fiscal quarter
ending March 31, 2000; equal to or greater than $1,000,000 as
of the last day of the fiscal quarter
ending June 30, 2000; not less than [$550,000] as of the last
day of the fiscal quarter ending September 30, 2000; and
lastly, equal to or greater than $1,000,000 as of the last day
of each fiscal quarter thereafter."
Except as specifically set forth in this Letter Agreement, all of terms
and conditions of the Loan Documents remain in full force and effect in
accordance with their original terms and conditions and Borrower hereby affirms,
ratifies and approves the Loan Documents.
Kindly acknowledge your agreement with the terms and conditions of this
Letter Agreement by signing and returning a copy of this letter.
Very truly yours,
Comerica Bank - California
Xxxxxx Xxxxxx
Vice President
Acknowledged and Agreed to on ____________________, 2000
Versant Corporation
___________________________________
Xxxx Xxxx,
Chief Financial Officer
